MIRA INFORM REPORT

Report Date :

28.05.2012

IDENTIFICATION DETAILS

Name :	AVNET TECHNOLOGY SOLUTIONS (INDIA) PRIVATE LIMITED (w.e.f.18.05.2009)
Formerly Known As :	ONTRACK SOLUTIONS PRIVATE LIMITED
Registered Office :	D/4131-39, Oberoi Garden Estate, Off Saki Vihar Road, Chandivli, Andheri (East), Mumbai-400072, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	21.06.1995
Com. Reg. No.:	11-089798
Capital Investment / Paid-up Capital :	Rs.2.508 Millions
CIN No.: [Company Identification No.]	U72200MH1995PTC089798
TAN No.: [Tax Deduction & Collection Account No.]	MUMO01083F
PAN No.: [Permanent Account No.]	AAACD3686M
Legal Form :	Private Limited Liability Company
Line of Business :	Distributors of electronic components, enterprise computer and storage products and embedded subsystems.
No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

B (30)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Clear
Comments :	Subject is an established company having moderate track. There appears some accumulated losses recorded by the company. Profitability of the company is under pressure. However, trade relations are reported as fair. Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some cautions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

LOCATIONS

Registered Office :	D/4131-39, Oberoi Garden Estate, Off Saki Vihar Road, Chandivli, Andheri (East), Mumbai-400072, Maharashtra, India.
Tel. No.:	91-22-44200200
Fax No.:	91-22-44200201
E-Mail :	pallavi.shah@avnet.com
Sales Office :	B-302 Delphi, Orchard Avenue, Hiranandani Business Park, Powai, Mumbai-400076, Maharashtra, India.
Tel. No.:	91-22-44200300
Fax No.:	91-22-44200301
E-Mail :	avnet.tsindia@avnet.com
Branch Office :	Located At: Ahmadabad Bangalore Chennai Hyderabad Kolkata New Delhi Pune

DIRECTORS

AS ON 30.09.2011

Name :	Mr. Naresh Ambelal Desai
Designation :	Director
Address :	204, Prime Rose A, Lokhandwala Complex, Versova, Andheri (W), Mumbai-400053, Maharashtra, India.
Date of Birth/Age :	27.03.1962
Date of Appointment :	21.06.1995
DIN No.:	00085255

Other Directorship:

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U72200MH1995PTC089798	AVNET TECHNOLOGY SOLUTIONS (INDIA) PRIVATE LIMITED	Director	21-06-95	21-06-95	-	Active	NO
2	U74140MH2008PTC184786	INTEGRITY SERVICES AND CONSULTANCY PRIVATE LIMITED	Director	18-07-08	18-07-08	-	Strike off	NO

Name :	Mr. Raymond John Sadowski
Designation :	Director
Address :	13120 E, Appaloosa Pl, Scottsdale, Az, United States of America, Pin Code 85259
Date of Birth/Age :	24.04.1954
Date of Appointment :	05.05.2009
DIN No.:	02631470
Name :	Jun Li
Designation :	Director
Address :	2934, East Brichwood, Chandler, AZ, United State of America, 85249, India
Date of Birth/Age :	21.08.1965
Date of Appointment :	20.09.2010
DIN No.:	03128048

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2011

Names of Shareholders	No. of Shares
Avnet India Private Limited, Bangalore, India	250749
Naresh Ambelal Desai	1
Total	250750

AS ON 30.09.2011

Equity Share Breakup	Percentage of Holding
Category
Bodies corporate	99.99
Directors or relatives of directors	0.01
Total	100.00

BUSINESS DETAILS

Line of Business :

Distributors of electronic components, enterprise computer and storage products and embedded subsystems.

GENERAL INFORMATION

Suppliers :

· IBM

· STG

· Software

· HP

· Sybase

· Juniper

· Citrix

· Double Take

· Vision

· VMware

· F5

No. of Employees :

Not Available

Bankers :

HDFC Bank Limited, HDFC Bank House Senapati Bapat Marg, Lower Parel West, Mumbai-400013, Maharashtra, India.

Facilities :

(Rs. In Millions)

Unsecured Loan	As on 31.03.2011	As on 31.03.2010
Working Capital Loans Banks Unsecured	(A)765.000	300.000
Other Debt Unsecured	(B)226.094	(C)218.594
Interest Accrued Due Other Debt Unsecured	45.335	19.985
Total	1036.429	538.579

(A) 1. Amount repayable within one year including interest Rs.766.665 Millions (previous year Rs. 301.117 Millions)

(B) 2. Tenure and repayment terms have not been specified

(C) 2. Tenure and repayment terms have not been specified

Banking Relations :	--
Auditors :
Name :	Walker, Chandiok and Company Chartered Accountants
Address :	Maruthi Info-Tech Centre, 11-12/1 Inner Ring Road, Koramangaia, Bangalore-560071, Karnataka, India
Tel. No.:	91-80-39806000
Fax No.:	91-80-39806999
PAN No.:	AAAFW4298E
Ultimate Holding Company:	· Avnet Inc.
Holding Company :	· Avnet India Private Limited
Fellow Subsidiary Company :	· Avnet Asia Pte Limited · Avnet Technology Hong Kong Limited
Related Parties :	· Integrity Services and Consultancy Private Limited · Avne t Holdings LLC

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
500000	Equity Shares	Rs.10/- each	Rs.5.000 Million

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
250750	Equity Shares	Rs.10/- each	Rs.2.507 Million

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		2.507	2.507	2.507
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		0.880	7.483	17.964
4] (Accumulated Losses)		(91.573)	0.000	0.000
NETWORTH		(88.186)	9.990	20.471
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		1036.429	538.579	79.540
TOTAL BORROWING		1036.429	538.579	79.540
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		948.243	548.569	100.011
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		23.161	16.109	9.273
Capital work-in-progress		0.000	0.000	0.000
INVESTMENT		0.000	0.010	0.052
DEFERREX TAX ASSETS		9.389	8.249	0.337
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	371.537	35.524	7.071
	Sundry Debtors	1238.276	691.687	43.235
	Cash & Bank Balances	19.801	53.977	33.771
	Other Current Assets	0.000	0.000	0.240
	Loans & Advances	139.044	94.182	35.759
Total Current Assets		1768.658	875.370	120.076
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	443.247	103.132	18.227
	Other Current Liabilities	405.244	241.396	7.962
	Provisions	4.474	6.641	3.538
Total Current Liabilities		852.965	351.169	29.727
Net Current Assets		915.693	524.201	90.349
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		948.243	548.569	100.011

PROFIT & LOSS ACCOUNT

	PARTICULARS			31.03.2011	31.03.2010	31.03.2009
	SALES
			Income
			Other Income
			TOTAL	2915.138	1397.305	339.752
Less	EXPENSES
			Office Expenses
			Administrative Expenses
			Advertising Expenses
			TOTAL	3010.609	1413.998	345.665
	PROFIT BEFORE TAX			(95.471)	(16.693)	(5.913)
Less	TAX			NA	6.212	(0.185)
	PROFIT AFTER TAX			NA	(10.481)	(5.728)
	EARNINGS IN FOREIGN CURRENCY
		Sale of Trade Goods		NA	5.419	0.000
		Commission Earnings			0.245	1.619
		Reimbursement of expenses from group companies			0.000	0.414
	TOTAL EARNINGS			NA	5.664	2.033
	IMPORTS
		Purchase of components and Software		NA	40.289	14.967
	TOTAL IMPORTS			NA	40.289	14.967
	Earnings Per Share (Rs.)			NA	NA	(22.84)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	NA	(0.75)	(1.69)
Return on Total Assets (PBT/Total Assets}	(%)	(5.33)	(1.87)	(4.57)
Return on Investment (ROI) (PBT/Networth)		1.08	1.67	(0.29)
Debt Equity Ratio (Total Liability/Networth)		(21.43)	89.06	5.34
Current Ratio (Current Asset/Current Liability)		2.07	2.49	4.04

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report (Yes / No)
1) Year of Establishment	Yes
2) Locality of the firm	Yes
3) Constitutions of the firm	Yes
4) Premises details	No
5) Type of Business	Yes
6) Line of Business•	Yes
7) Promoter’s background	Yes
8) No. of employees	No
9) Name of person contacted	No
10) Designation of contact person	No
11) Turnover of firm for last three years	Yes
12) Profitability for last three years	No
13) Reasons for variation <> 20%	--
14) Estimation for coming financial year	No
15) Capital in the business	Yes
16) Details of sister concerns	Yes
17) Major suppliers	Yes
18) Major customers	No
19) Payments terms	No
20) Export / Import details (if applicable)	No
21) Market information	--
22) Litigations that the firm / promoter	--
23) Banking Details	Yes
24) Banking facility details	Yes
25) Conduct of the banking account	--
26) Buyer visit details	--
27) Financials, if provided	Yes
28) Incorporation details, if applicable	Yes
29) Last accounts filed at ROC	Yes
30) Major Shareholders, if available	Yes

Business:

With global economy gradually regaining strength, turnover of goods traded increase manifold to Rs. 2861.390 Millions against Rs. 1369.594 Millions during the corresponding period.

Total Income and expenditure for the year ending 31st March, 2011 stood at Rs. 2915.138 Millions and Rs. 3010.609 Millions. Due to overall increase in expenditure loss of the Company was Rs. 95.471 Millions

For business turnaround, the Board of Directors have formulated strategies for implementation of its plans and policies, thereby enhancing market share and network, due to which expenditures has increased manifold thereby resulting loss..

Fixed Assets:

• Buildings
• Furniture and Fixtures
• Air Conditioners
• Computer Systems
• Communication Equipments
• Electrical Installation
• Office Equipments
• Vehicles

As Per Website Details:

Profile:

Avnet Technology Solutions is an operating group of Avnet, Inc. (NYSE: AVT), one of the world’s largest distributors of electronic components, enterprise computer and storage products and embedded subsystems. A Fortune 500 company (2009 Ranking 144) with sales of $16.23 billion in fiscal 2009, Avnet, Inc. connects more than 300 technology suppliers with more than 100,000 customers in 70-plus countries around the world. Avnet, headquartered in Phoenix, Arizona, has been in business since 1921 and was incorporated in 1955. Today Avnet has nearly 12,000 employees.

Avnet Technology Solutions markets and sells enterprise and embedded technology products from the world’s premier computer manufacturers and software suppliers, as well as the services and solutions required to implement them efficiently and effectively. Their relationships with diverse technology suppliers, including well-established leaders and emerging market innovators, coupled with their rich services portfolio, help their partners reach new markets and new customers.

With the support of more than 3,200 Avnet Technology Solutions professionals around the globe, their partners become part of a worldwide network that enables them to profit from high-growth opportunities faster and with less investment, wherever they choose to do business. Their brand promise emphasizes their commitment to outperform the competition.

Positioned as a premier Solutions distributor, ATS India today is a unique combination where it collaborates with its channel partners to create and deliver effective solutions that are designed to address the business challenges of end-user customers.

ATS India creates indispensable relationships with and between, its supplier and channel partners. Avnet listens to its partners, takes action to support their needs, and aligns its people, business strategies and resources with those of its partners to bring focus to channel initiatives and remove barriers to growth. The goal of every Avnet Technology Solutions partnership is to accelerate success, from the technology manufacturer through to the end customer.

Press Release

October 12, 2009

Avnet signs Distributor Agreement in India with Virtualization Leader VMware

Avnet to offer full suite of VMware products and solutions to the Indian market

Avnet Technology Solutions, a value-added IT distributor and an operating group of Avnet, Inc. (NYSE: AVT) announced today that the company has signed a value-added distribution agreement in India with VMware. This agreement will enable Avnet to offer the full suite of VMware virtualization products and solutions to the Indian market through the company’s network of resellers.

Under this agreement, Avnet will enhance its current portfolio of products and services by distributing virtualization solutions from VMware that span desktop, datacenter and cloud computing applications. As the global leader in virtualization, VMware solutions are designed to substantially lower IT costs, provide more flexibility in choosing operating systems, and offer a more automated and resilient systems infrastructure capable of responding to Indian customers’ variable business demands, enabling them to more efficiently build, run and manage applications within internal and external cloud architectures.

Naresh Desai, general manager, business development, Avnet Technology Solutions, India, said, “Virtualization is rapidly transforming the IT industry, and the traditional model of IT has become inoperable with the arrival of recent technologies like cloud computing. VMware solutions provide customers with an evolutionary path between these two models, and in partnering with VMware, we will work together to expand the use of virtualization in India. Introducing VMware solutions to our broader partner and reseller community aligns with our commitment to provide our partners with a broad range of platforms and products to take to market.”

T. Srinivasan, managing director, VMware India and SAARC, said, “Avnet is now distributing VMware solutions across the country. Our solutions help organizations drive enhanced efficiency, performance and cost savings. Avnet will enable us to deliver these benefits to an increasing number of customers in India as we expand the potential of virtualization."

Led by a desire to control IT costs and deliver improved business continuity, SMB and enterprise customers across the country are increasingly turning to VMware as the proven virtualization industry leader that addresses their critical IT needs by delivering the most reliable, best-performing and easiest to manage virtualization solutions. VMware’s customers in India include Atrenta India, Bajaj Auto, Chitale Dairy, Dewan Housing Finance Corporation Limited, Essel Propack, i2 Technologies, Mahindra and Mahindra, and Reliance General Insurance, to name a few.

VMware recently unveiled VMware vSphere™ 4, which offers customers the highest consolidation ratios in the industry. This could translate into hundreds of thousands of dollars in savings for some customers—according to a new report released by industry analyst firm, Taneja Group.

VMware vSphere 4 provides ‘Always On IT’ for SMB customers, bringing the high availability, performance and reliability of the VMware platform together with cost-effective solution packages designed for the business needs of SMBs.

About Avnet Technology Solutions

Avnet Technology Solutions is an operating group of Phoenix-based Avnet, Inc. As a global technology sales and marketing organization, Avnet Technology Solutions has sales divisions focused on specific customer segments and a select line card strategy enabling an exceptional level of attention to the needs of its customers and suppliers. For fiscal year 2009, the group served customers in more than 30 countries and generated US $7.04 billion in annual revenue. For more information, visit www.ats.avnet.com

About Avnet

Avnet, Inc. (NYSE:AVT), a Fortune 500 company, is one of the largest distributors of electronic components, computer products and embedded technology serving customers in more than 70 countries worldwide. Avnet accelerates its partners’ success by connecting the world’s leading technology suppliers with a broad base of more than 100,000 customers and by providing cost-effective, value-added services and solutions. For the fiscal year ended June 28, 2009, Avnet generated revenue of $16.23 billion.

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.55.73
UK Pound	1	Rs.87.26
Euro	1	Rs.69.89

INFORMATION DETAILS

Report Prepared by :

BSN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	3
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILIRY	1~10	-
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	3
--CREDIT LINES	1~10	3
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	NO
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		30

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.